eBay not using PayPal anymore?

[j02237589]

I got a message from eBay saying to update my account details.

"It’s now simpler to get paid on eBay

Getting paid has changed: Fees and expenses will be deducted before you get paid out and the remainder of your earnings will go directly to your bank account, not your PayPal account. Get set up in a few easy steps."

I primarily just tend to leave all the money I receive in my PayPal, so I wanted to ask for clarification: does this mean sellers can no longer use PayPal as a means of payment? We have to store the money in a bank account now?

I also saw something saying eBay raised their fees. Is that also true? 

Thanks for clarifying.

[crowbar1115]

🥑

[edonnamarie]

THIS REPLY IS HILARIOUS!!! SO IRRATIONAL!!!

WHAT "FEE YOU PAID TO PP?"

"THE FEES FOR SALES COME OUT IMMEDIATELY." YOU FORGOT(?) TO MENTION ANNNNDDD MOOOORRRREEE FEES FOR THE SAME SALES ARE CHARGED TO SELLERS ON A MONTHLY INVOICE!!!

edonnamarie

in reply to j02237589 01-26-2021 10:56:58 AM

Ebay is doing us dirty.

I am so glad Paypal resolved my dispute IN MY FAVOR (against ebay for the bogus "Final Value Fee").

EBAY: UNTIL YOU DO RIGHT BY SELLERS, I WON'T BE ONE!

Hoping all sellers abused by ebay can free yourself, too. THERE ARE MANY OTHER PLACES FROM WHICH TO SELL WITHOUT BEING BOGUSLY CHARGED.

DO NOT COME AFTER ME WITH ILLOGICAL **bleep**!!! I KNOW WHAT I HAVE EXPERIENCED. I KNOW WHAT OTHERS HAVE/ARE EXPERIENCING. WE KNOW WHAT WE ARE TALKING ABOUT. IF YOU'RE FINE WITH BEING TAKEN ADVANTAGED OF, THEN . . .

[edonnamarie]

Ebay is doing us dirty.

I am so glad Paypal resolved my dispute IN MY FAVOR (against ebay for the bogus "Final Value Fee").

EBAY: UNTIL YOU DO RIGHT BY SELLERS, I WON'T BE ONE!

Hoping all sellers abused by ebay can free yourself, too. THERE ARE MANY OTHER PLACES FROM WHICH TO SELL WITHOUT BEING BOGUSLY CHARGED.

DO NOT COME AFTER ME WITH ILLOGICAL **bleep**!!! I KNOW WHAT I HAVE EXPERIENCED. I KNOW WHAT OTHERS HAVE/ARE EXPERIENCING. WE KNOW WHAT WE ARE TALKING ABOUT. IF YOU'RE FINE WITH BEING TAKEN ADVANTAGED OF, THEN . . .

[blue11]

I ended my listings today. I'm done selling on ebay.

Despite mam98031's passionate and disingenuous defense of the new policy (Are you a paid ebay shill? You sure sound like one in every single post you make), what has happened is this:

ebay decided they wanted to handle all the finances, not have paypal take their small fee. Instead, ebay will now take that small fee in addition to all the other 'small fees' we've gotten charged. Don't fall for the "No more PayPal payment processing fees" bullet point in their email. It's the same fee, just with a changed name, and now it goes to ebay instead of paypal. I don't think anyone cares where the fee goes. The fee is still being charged.

Instead of 'instant payment' to your paypal account, now it's 3-7 days before you get paid. Only a really sloppy person would ship before getting paid, so now shipments will be 3-7 days after the auction ends and payment has been made by the buyer, and now the buyer is also affected with longer shipment/delivery times.

Not satisfied with taking a 10% fee on shipping, they will also take a 10% fee on sales tax.

If you thought the way sellers sometimes get screwed over when taking paypal, this ability to reach into your bank account opens up a whole new avenue of ways to torture sellers. And you now have to keep a constant eye on that bank account to make sure that payment has arrived so you can ship, and also for when they reach in to claw back a payment because a buyer is 'unhappy', so you don't go into overdraft and all those related bank fees.

Every vendor will make their own decision on this issue, of course. I've made mine. Those moving a big volume of goods through ebay will have different concerns than a small vendor selling off some used stuff as I am.

I will no longer sell, but will continue to occasionally buy on ebay when necessary for as long as they continue to take paypal. Once that ends, I'm done with ebay completely.

And mam98031, do us all a favor and don't bother replying to this with the ebay party line. As you may have gathered, people posting here just aren't interested in your spin.

[stein_baron]

It's simply a fact that by giving eBay direct access to your bank account, you have fewer opportunities for redress or remedy in the event of a dispute.   That is going to be true whether you set up a separate checking account or not.  This should be common sense and not a point of argument in this thread.   

Spreading your bank information around is a bad idea.  eBay has now made this 'bad idea' mandatory for sellers and you are relying on their information security and good faith that they will do right by you.  I'd expect there is far more consumer protection law already in place when you are dealing with banks and credit card companies than dealing with eBay in the event of fraud or billing disputes. 

eBay is doing this because they have decided it is good for eBay.  Pro sellers may be fine with this policy change as a price of doing business , but for casual sellers like myself, this is a major detriment both in privacy and exposure to potential loss.  Maybe eBay has decided they no longer need casual sellers and they have planned for a steep drop off in these types of listings.  I expect that is exactly what is going to happen.  

I won't be providing this information to eBay, so yes, it will be goodbye to selling unless and until there is a change in policy.     

[mam98031]

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@indianglenn38 wrote:

eBay is now demanding that sellers provide a bank checking account that they will use to deposit your net income from a sale (after deducting all fees) and be able to withdraw from that account to pay for other expenses like shipping costs. That would be OK if they followed regular ACH processes but..... Once you provide a bank routing number and checking account number to eBay they change all your listings to eBay payments only for your buyers. Without telling you, they will not release your net sales until you provide your social security number to a non secure site. (not an ACH requirement). Further, you can not reverse your request and go back to PayPal, nor can you post a new listing to accept PayPal payments. They further state that they will be issuing 1099 statements for you to submit to the IRS on your sales income. They also state that they will be researching your activity as it relates to "The Money Laundering Control Act", whatever that means. I have all the eBay emails sent by them to confirm this.

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@indianglenn38 

You have just missed some announcements, emails and Seller Updates.  What you are talking about is Ebay's MP [Managed Payments] program.  Ebay is going to be doing their own money processing for sellers instead of PP.  This has been something Ebay has been working towards for about 3 years now.  They are planning to have all sellers in the program by the end of 2021.

Right now they are phasing sellers into the program and that is what you are experiencing.  So they are REQUIRED by federal law to have your SSN.  And yes, if you qualify for a 1099K, Mp will issue you one.

While sellers in MP can no longer have PP as their money processors, buyers are free to use PP if they want to.  The payment the buyer submits will still come through your MP account.

The MP program functions very similarly to the other similar sites to Ebay.  All the bigger sites have their own money processing programs.  Now so does Ebay.

[mam98031]

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@indianglenn38 wrote:

further, they will not release your money until you submit your social security number to a non-secured site.

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There is absolutely NO REQUIREMENT to give your SSN to a "non secured site".  NONE.  You are mistaken.

[mam98031]

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@indianglenn38 wrote:

12.35% total fee plus .30 per transaction. Simply put, a $3.00 item now has 22.35% fee.

Biggest problem is you must provide your social security number to a non-secured site before eBay will release your money.

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The 30 cent transaction fee in MP is EXACTLY the same as it was for you in PP.

[mam98031]

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@ram4less14 wrote:

Me too.  I want to receive payment to Paypal, not my bank account.  Will have to look at other selling platforms to achieve this.

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Once Ebay notifies you that it is time to move into MP by whatever date they give you, you need to register for MP.  The choice you have is to register for MP or stop selling on Ebay.  There are no other options.

[mam98031]

@blue11 

"Despite mam98031's passionate and disingenuous defense of the new policy (Are you a paid ebay shill? You sure sound like one in every single post you make),"

I have always wondered why the facts threaten some people????  Maybe you could share with us why?

I just explained how any given part of MP works.  How it actually works.  You and other sellers then can make an INFORMED decision on if they want to stay or go.  I don't really care what you choose.  I just simply think it is better to know the FACTS about something before making a decision from others that are venting, assuming and simply passing around gossip, irreguardless to the actual facts because the facts don't fit with what they are feeling.

Business decisions made from feelings instead of facts is often not a good decision at all.

[mam98031]

@stein_baron 

Have you ever paid by check?  Did you realize that your bank routing number and your bank account number appear on that check?

[jas17931]

However if I get paid through PayPal I can have the funds transferred to my bank debit card in minutes, no other option other thank a three day hold.  I am not being provided a Reg CC disclosure, a notice of funds availability or a truth in savings disclosure.  Are my funds covered under FDIC insurance? If eBay is going to act like a bank they need to start providing required bank information.  What safe guards are in place to protect my account information or unscrupulous buyers who scam the seller and eBay puts a hold on my bank account without my knowledge, which could cause me to accumulate bank fees.  The notice I received was if I did not provide my info my account would be suspended.  They want my social security number but it is impossible to locate a contact number to speak with someone? Your going to file a 1099 on used items I sold on eBay for less than I paid and am not required to report as income?  Class action lawsuit with be in immediate future.

[jas17931]

Not necessarily when you act as a bank or payment processor you are under the rules of the US Banking Code.  As someone who has spent 30 years in banking, I can say there are numerous red flags with how this is being handled.

[mam98031]

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@jas17931 wrote:

However if I get paid through PayPal I can have the funds transferred to my bank debit card in minutes, no other option other thank a three day hold.  I am not being provided a Reg CC disclosure, a notice of funds availability or a truth in savings disclosure.  Are my funds covered under FDIC insurance? If eBay is going to act like a bank they need to start providing required bank information.  What safe guards are in place to protect my account information or unscrupulous buyers who scam the seller and eBay puts a hold on my bank account without my knowledge, which could cause me to accumulate bank fees.  The notice I received was if I did not provide my info my account would be suspended.  They want my social security number but it is impossible to locate a contact number to speak with someone? Your going to file a 1099 on used items I sold on eBay for less than I paid and am not required to report as income?  Class action lawsuit with be in immediate future.

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Money processors are NOT FDIC insured.  So PP is not insured nor is MP.

However when MP releases a payout it goes into the ACH banking system which is FDIC insured.

They require your bank info because that is how they get your money to you in MP.

They require your SSN because it is REQUIRED by Federal Law.  The 2020 Anti Money Laundering law and by IRS.

The thresholds for a 1099K vary.  IRS's requirement is 20,000 and 200 transactions. 

https://www.irs.gov/pub/irs-pdf/i1099k.pdf

However some states recently started requiring 1099Ks for a much lower amount.  Here is part of what Ebay's policy states, however I think there are other states that require a 1099K.

Sellers in Massachusetts and Vermont

Massachusetts and Vermont use a threshold of $600 and don’t use a transaction threshold, so if you reside in one of these states, you’ll receive a Form 1099-K if the gross amount of payments you receive equals or exceeds $600, irrespective of the number of payments you receive. We’ll also report this amount to the Massachusetts or Vermont tax authority as applicable. You should also note that your gross payments won’t be reported to the IRS unless you exceed $20,000 in gross payments and have more than 200 transactions.

https://www.ebay.com/help/selling/fees-credits-invoices/ebay-form-1099k?id=4794

Here is a little more that I found.

There are currently 9 states, including Maryland, that have 1099-K threshold reporting below the federal threshold: Massachusetts, D.C., Mississippi, Vermont, New Jersey, Arkansas, Illinois, Virginia and Maryland. According to tax and regulatory experts, many other states will follow suit, and soon.May 14, 2020

https://sovos.com/blog/2020/05/14/prepare-for-new-1099-k-reporting-requirements-across-the-u-s/#:~:t....

[mam98031]

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@jas17931 wrote:

Not necessarily when you act as a bank or payment processor you are under the rules of the US Banking Code.  As someone who has spent 30 years in banking, I can say there are numerous red flags with how this is being handled.

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Money processors are not treated as a bank because they aren't one.  Are there likely to be commonality in some of the rules for money transmitters and banks.  I would certainly agree with you.  A large distinction between the two is that money processors are NOT FDIC insured but banks are.

Have you updated yourself on the updated Anti Money Laundering laws of 2020.  That has an impact on this.  As well as some states are now requiring 1099Ks to be filed yearly for much lower thresholds than IRS requires.

There are currently 9 states, including Maryland, that have 1099-K threshold reporting below the federal threshold: Massachusetts, D.C., Mississippi, Vermont, New Jersey, Arkansas, Illinois, Virginia and Maryland. According to tax and regulatory experts, many other states will follow suit, and soon.May 14, 2020

https://sovos.com/blog/2020/05/14/prepare-for-new-1099-k-reporting-requirements-across-the-u-s/#:~:t....

https://www.finra.org/rules-guidance/key-topics/aml/faq

[jas17931]

Mp certainly fall under the jurisdiction of the fdic, please see “Risk Management Examination Manual for credit card activities”, Chapter XIX for merchant processing activities.   

There are notice and disclosure requirements the third party payment processor is required to provide the merchants, which is not being done.

The ACH banking system is not FDIC insured, the individual member banks are. 

Can you please provide the federal regulation that requires someone to provide their social security number?  The is no such regulation.

I am not a licensed tax preparer so I cannot legally  provide tax advise and am not attempting to.  However issuance of a 1099  and disclosure to the IRS is not required if under the threshold.  

I have serious concerns with ebays lack of direct contact information to speak with a live agent.  I requested a call back, said I would receive in one minute.  It took over two hours and 7 requests.